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 SEBI widens ambit to act against intermediaries

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The Financial Express (India) today has discussed how SEBI by amending the SEBI (Intermediaries) Regulations, 2008 has widened the power of SEBI to conduct an inquiry and pass orders against registered intermediaries.

SEBI on August 01, 2022 vide a Gazette Notification amended the SEBI (Intermediaries) Regulations, 2008 and has effectively delegated Executive Directors and Chief General Managers of SEBI the power to conduct inquires and pass orders. Earlier this power only vested with the Chairperson and the Whole-Time Members. A more detailed analysis of the amendment along with the notification can be accessed in a previous post by Regstreet Law Advisors available at https://lnkd.in/dwREWSr2.

In this background, Mr. Sumit Agrawal, Partner, Regstreet Law Advisors has been quoted with the view that “The effect of the amendment and the efficiency of the process will be seen when this amendment is implemented in the coming days, especially in the mounting cases of broker defaults and illegalities in the conduct of research analysts and investment advisory industry. This amendment is also important for bringing closure to the cases relating to brokers under National Spot Exchange scam as well as the inspection of certain registrar and share transfer agents.”

The Financial Express (India) article also quoted Mr. Abhiraj Arora, associate partner, Economic Laws Practice (ELP) who is of the view that “The adjudication process has often been plagued with delays. And one of the primary reasons for that is that only WTMs were empowered to adjudicate matters under the SEBI Act. Through this latest amendment, the power to adjudicate has now been delegated to an officer who is not below the rank of chief general manager. It is expected that with this broadened pool of adjudicators, the quality of due process and natural justice will continue to be upheld.

The article of the Financial Express (India) is enclosed with this post for convenience and can also be accessed at https://lnkd.in/dybr7uV9

Readers are welcome to send their questions or comments to Regstreet Law Advisors at info@regstreetlaw.com

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